# Analysis of Top Divergence and Bottom Divergence in Technical Analysis 🔍

Divergence, bottom divergence, these professional terms often appear in the trading circle. What do they actually mean? How can they help us see market trends clearly?

# # 頂背離 (Bearish Divergence) 🐻

Imagine this. The price skyrockets, reaching new highs. But strangely, indicators like RSI or MACD do not follow suit and instead decline. This is called a bearish divergence.

It's a bit like a person reaching the top of a mountain and being out of breath. The seemingly strong rise actually lacks internal momentum. This situation seems to suggest that the bullish strength is weakening. The market might be about to change.

# # 底背離 ( Bullish Divergence ) 🐂

Conversely, the market price continues to decline, reaching new lows. However, the indicators are not as pessimistic and even begin to rise. A bottom divergence has appeared.

Just like a person who has hit rock bottom, they realize that they still have the strength to stand up. The decline appears fierce, but in reality, the potential for a rebound has already begun to brew internally. The strength of the bears seems to be diminishing 📈

# # Key Points for Divergence Judgement 🔑

1. **Key Observations**:
- Divergence at the top? Beware of pullback risks 🔥
- Is there a bottom divergence at a low level? It could be a buying opportunity 🚀

2. **Common Tools**:
- RSI Indicator
- MACD
- Random Indicator

3. **Signal Strength**:
- The degree of divergence is large, and the signal is usually more obvious.
- Divergence in overbought and oversold areas? Feels more credible ⚡

# # Notes on Using Divergence ⚠️

Divergence analysis is not万能的. No indicator can be 100% accurate.

In a volatile market, false signals can sometimes appear. Annoying.

It is best to use it in conjunction with other indicators. Using it alone carries high risks.

Even if you see a clear divergence, don't forget to set a stop loss. Protect yourself.

Top divergence and bottom divergence are just tools in the toolbox. They may help you find market turning points, but they can also lead you astray. The trading market is not that clear-cut. Even if it feels right, be careful to verify.